(1) The arbitral
tribunal must decide the dispute in accordance with such rules of law as are
chosen by the parties as applicable to the substance of the dispute.
(2) Any designation of
the law or legal system of a given State or Territory must be construed,
unless otherwise expressed, as directly referring to the substantive law of
that State or Territory and not to its conflict of laws rules.
(3) Failing any
designation by the parties, the arbitral tribunal must apply the law
determined by the conflict of laws rules which it considers applicable.
(4) The arbitral
tribunal must decide the dispute, if the parties so agree, in accordance with
such other considerations as are agreed to by the parties.
(5) In all cases, the
arbitral tribunal must decide in accordance with the terms of the contract and
must take into account the usages of the trade applicable to the transaction.
Note for this section:
This section (other
than subsection (4)) is substantially the same as Art 28 of the Model Law.